A little over seven years ago, the management at Monroe Wheelchair determined the environment then and the one they saw coming for mobility products and

A little over seven years ago, the management at Monroe
Wheelchair determined the environment then — and the one they
saw coming — for mobility products and services demanded an
operational change. The company's leaders knew it was time to
improve productivity through information technology.

“We realized that if we did not formulate a plan to
implement IT in our company, we would not survive,” says Doug
Westerdahl, president.

Monroe Wheelchair's primary focus is on complex rehab, which
makes up 70 percent of its product offerings, but the company also
offers standard DME, lifts and ramps and support surfaces. Over 60
employees provide products and services at three upstate New York
branches, including headquarters in Rochester and locations in
Syracuse and Latham.

According to Westerdahl, the current HME market poses a number
of operational challenges for providers: maintaining or improving
gross profit margin while fee schedules are being reduced;
streamlining processes to improve productivity; maintaining
competitive wages for staff; maintaining a high level of service
while revenues decrease and overhead expenses increase; maintaining
strong banking relationships; and motivating employees.

“Unfortunately, we must also plan for the effects of
competitive bidding, which means accomplishing all of this with an
anticipated 15 percent reduction in revenue,” he says.

Knowing that these challenges were on the horizon prompted
Westerdahl and his staff to develop goals and a plan to prepare for
the industry's future. The first step included hiring an IT manager
and investing in PCs or laptops for 90 percent of the staff, then
networking the locations and employees.

“We then hired a programmer and began to develop our own
proprietary work flow process software,” says Westerdahl.
“This was our single biggest and wisest decision.”

The company also invested in document imaging software and
software to schedule and route deliveries. An automated email
notification system was developed to let customers and referral
sources know of order status changes. The company created a
paperless system to email or electronically fax documentation to
doctors, clinicians and insurers in addition to developing a
paperless system that electronically faxes or emails purchase
orders to manufacturers.

“With these IT enhancements, we have seen our revenue per
full-time employee go from $113,000 per year in 2001 to $208,000
per year in 2006,” says Westerdahl. “We saw a slight
setback to $191,000 per year in 2007. However, considering the 15
to 20 percent reduction in the power mobility device fee schedule
in 2007, we recognize revenue per full-time employee could have
been much worse.”

The biggest obstacle the company faced when implementing the
technology changes is one that is common — and costly —
in the HME industry, according to Westerdahl.

“We tried to convince software companies that it is wise
and beneficial for our industry to integrate with other software
companies,” he says. “The only way to deal with that is
to be persistent. We have paid as much as $20,000 for such
integration. On the other hand, we have dealt with some software
companies that see the benefits of integration and provide the
programming at no charge.”

Westerdahl gives credit for the operational improvements to the
focus on IT, but he also says it is not the most critical
factor.

“I have a personal belief that the key to success for
anyone is to surround yourself with good people and never lose a
passion for what you are doing,” he explains. “I have
an incredible group of managers and support staff that I believe
are some of the best in the industry. I consider myself extremely
lucky to work with all of them.”

Monroe has achieved success by streamlining operations through
technology, but Westerdahl hasn't stopped looking forward,
continually exploring new ways to improve the company's
processes.

“You might think that a company would experience some
difficulty implementing as much change as we have over the past
several years, but I can proudly say that all of our changes have
been met with enthusiasm. Our managers and staff have recognized
that change is necessary in order for us to survive,” he
says.